CME Group has become a household name in the financial sector. The company allows clients to trade futures, cash, and OTC markets. Its recent focus on Bitcoin has also attracted a fair bit of attention. To further solidify its position, the company has acquired NEX Group plc.
CME Group wants to strengthen its position in the finance industry. Actively expanding their services and potential customer base are positive signs in this regard. Their acquisition of NEX Group will give the company additional leverage. This also means the NEX name will be retired, even though the service will operate its individual markets and optimization businesses. For the end user, very little should change during this crucial period.
A Major Step Forward for CME Group
As CME Group specializes in futures trading and product development they will scale NEX businesses to a next level. This is achieved all the while maintaining the existing market structures. New trading opportunities will be extended to participants and the trading across different platforms will become more accessible. Another benefit of this acquisition is how it improves reconciliation and processing aspects.
CME Group CEO Terry Duffy adds:
“We are extremely pleased to complete this acquisition and welcome NEX into CME Group. By combining the strengths of our two leading organizations, CME Group is uniquely positioned to address the changing needs of market participants worldwide. Together, we will provide efficient access to futures, cash and OTC markets, as well as post-trade services and data offerings that will further support cost-effective trading and risk management.”
It is a bit unclear how this will affect CME’s venture into cryptocurrency futures contracts. That business model, while still relatively new, has not received too much attention to date. The acquisition of NEX may improve the appeal of this particular product, although it remains to be seen what the future will hold exactly. NEX is a world-class company, and its acquisition by CME can lead to intriguing developments moving forward.